Here’s How Many Credit Cards You Should Actually Have

Everyone has a different financial situation and how they deal with credit. If you’re the type of person that has trouble balancing their budget and rely too heavily on credit cards, then maybe having less credit is a better option. Especially when it comes to building a good credit score — which is largely based on your reliability to pay the balance you owe by a certain date — the last thing you want is to have two, three, or even more cards that are running into late-payment situations. This could have a negative impact on your credit history and be a factor in monetary stress.

But, if you’re on top of your finances and are responsible enough to be paying on time, and not overextending your lending habits, then there’s nothing wrong with carrying more than one card. In fact, according to FICO (via CNBC), people who have excellent credit scores (ranging in the area of 800) have an average of three credit cards. So maintaining more than one credit card can actually prove helpful to both your credit history and score. If you’re extended a credit card that has a reward-based system, it might be more in your favor to get the card. You’ll not only be building your good line of credit but reaping the benefits of the account as well. This could come in the form of cashback, travel rewards, or other point-based methods when you use your cards.